Trane Technologies plc (TT)

The main market is commercial and industrial buildings: schools, hospitals, warehouses, offices. Equipment is sold once and serviced for decades, and the service arm provides steady, high-margin revenue independent of the construction cycle.

Two structural flows work in the company's favour. The first is refrigerant regulation: banning older compounds forces early equipment replacement, creating demand on a schedule rather than at the customer's discretion. The second is data-centre cooling, where load density demands systems not previously installed.

Risks are copper and steel costs, construction activity and the ability to hire installers: few buyers fit climate equipment themselves, and a shortage of contractors pushes revenue into the next quarter as reliably as a shortage of equipment does. The company pays a dividend and buys back stock actively.